The Lion Dairy and Drinks business, which includes major names such as Big M, Dare iced-coffee, Daily Juice and Pura Milk remains for sale after fellow beverages giant Coca-Cola Amatil confirmed that it will not be a buyer of the asset.
Lion has had the business on the market since last year and was strongly rumoured to have been close to a deal with Japanese giant Asahi.
But that process came to an abrupt halt after Asahi had struck a deal to buy iconic beer maker Carlton & United Breweries for $16 billion from its European-headquartered owner Anheuser-Bush InBev (AB InBev)
Coca-Cola Amatil boss Alison Watkins said last week that her company had already made it "pretty clear a few months back" that it had no plans to acquire Lion Dairy and Drinks.
When Asahi walked away from a potential deal its local executive chairman Peter Margin described the asset as quite a good business.
"I think since late last year we and a number of others have looked at that Lion dairy business. And at this point in time we've elected not to proceed with that...We've got a bit more on our plate at the moment," he told The Age and The Sydney Morning Herald.
Mr Margin said Asahi's decision was due to a combination of factors, not just due to the big beer deal.
"The sale process for the Dairy & Drinks Specialty Cheese business to Saputo Dairy Australia is continuing to move through the regulatory approvals process," a Lion Dairy & Drinks spokeswoman said.
"In terms of the balance of the Dairy & Drinks business, we are continuing to consider various pathways forward."
Last year when Lion announced the sale it said that any sale would "not impact" its local alcohol businesses. Lion has about a 41 per cent share of the Australian beer market and brews major beers including XXXX and James Boag's.